Official: Himbara and LinkAja to Collect Tax on Foreign Digital Transactions

The government has begun implementing the Foreign Digital Transaction Tax Collection System (SPP-TDLN) as of 25 September 2026. This system is designed to collect Value Added Tax (VAT) on foreign digital transactions conducted by consumers within Indonesia.

The Director General of Taxes at the Ministry of Finance, Bimo Wijayanto, stated that in its implementation, SPP-TDLN utilises information from payment systems to identify foreign digital transactions that meet the criteria for VAT collection. If a transaction meets the specified provisions, the VAT is collected through the established mechanism.

“SPP-TDLN is part of the government’s efforts to ensure that VAT collection can keep pace with the developments in transactions and payment systems within the digital economy,” said Bimo, as quoted in a statement on Friday (2/10/2026).

Before being fully implemented, SPP-TDLN underwent testing phases within a sandboxing environment and a stabilisation period. These stages were conducted to ensure system readiness, business processes, data exchange, and integration with the parties involved in the collection process.

Following the completion of these stages, SPP-TDLTN has entered the ‘go live’ phase, involving other parties appointed as VAT collectors for the implementation of SPP-TDLN (issuers). In the initial stage, the six appointed issuers consist of the State-Owned Banks Association (Himbara), including PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero), PT Bank Tabungan Negara, PT Bank Syariah Indonesia, and PT Fintek Karya Nusantara (LinkAja).

Currently, other issuers are undergoing testing in a sandboxing environment and will soon enter a stabilisation period, after which they will be appointed as VAT collectors.

According to Bimo, the involvement of these issuers is a vital component in supporting the effective implementation of VAT collection on foreign digital transactions.

“The implementation of SPP-TDLN is expected to increase the effectiveness of VAT collection, strengthen tax compliance, and provide equal tax treatment for the consumption of goods and services from both domestic and foreign sources. The government will continue to monitor and evaluate the implementation to ensure it proceeds according to regulations,” said Bimo.

Bimo also emphasised that SPP-TDLN does not constitute a new type of tax and does not change the existing VAT rates.

This system is a mechanism for collecting VAT on the use of foreign digital goods and services by consumers in Indonesia. SPP-TDLN is applied to transactions where VAT has not yet been collected through the Electronic System-Based Trade (PMSE) VAT mechanism. Consequently, the collection of VAT can be carried out without resulting in double taxation on the same transaction.